Title IV Financial Aid

Title IV Credit Balances
A Title IV Credit Balance is created when a student receives Title IV Financial Aid in excess of BSMCON Charges, thus creating a negative student account balance. A refund of Title IV Credit Balance, typically referred to as a Stipend, is processed as payment back to the student (or parent) within fourteen (14) calendar days of occurrence (i.e., the date that the Title IV financial aid funds were disbursed to the student account and applied to posted charges), in accordance with Federal Regulations. A student (or parent) may authorize BSMCON to retain a Title IV Credit Balance and apply the credit balance to a future Semester within the same Academic Year. In such cases, a Title IV Credit Balance Authorization form must be submitted to the Bursar prior to the start of each Semester, as applicable.

A parent is the borrower under the Federal Direct Parent PLUS Loan program. As such any Title IV Credit Balance from a Federal Direct Parent PLUS Loan will be remitted to the parent unless the parent authorizes BSMCON to apply the credit balance to a future Semester within the same Academic Year or authorizes BSMCON to remit payment to the student. In either situation, a Title IV Credit Balance Authorization form must be submitted to the Bursar prior to the start of each Semester, as applicable. The Title IV Credit Balance Authorization form is published on the BSMCON website under Financial Aid.

Return of Title IV (R2T4)
In certain cases of withdraw, if the student is eligible to receive, or has received (disbursed), Title IV Financial Aid, a Return to Title IV (R2T4) calculation must be performed in accordance with Federal Regulations to determine the amount of Title IV Financial Aid the student has earned and when applicable, the amount of Title IV Financial Aid that must be returned to the U.S. Department of Education (ED). Title IV funds are earned in direct proportion to the length of time that a student remains enrolled. Up through the 60% point during the period of enrollment (Semester) a prorated schedule is used to determine the amount of Title IV Financial Aid that the student has earned. Once 60% of the period of enrollment (Semester) is complete, 100% of Title IV Financial Aid is earned by the student and is not required to be returned. Within thirty (30) calendar days of the Date of Determination, the Director of Financial Aid is required to complete the Treatment of Title IV Funds When a Student Withdraws from a Credit-Hour Program (R2T4 Calculation) worksheet, which identifies any Title IV funds that BSMCON and/or the student is responsible for returning to the ED. In the event that Title IV funds are required to be returned, the R2T4 will be processed within forty-five (45) calendar days of the Date of Determination.

R2T4 Refunds are made in the following order:

• Federal Direct Unsubsidized Loans
• Federal Direct Subsidized Loans
• Federal Direct Parent PLUS Loans
• Federal Pell Grant
• FSEOG